Stora Enso has decided to commence a feasibility study with the aim of expanding containerboard production at Ostrołęka Mill in Poland by 500,000 tpy.
The findings of a recently completed pre-feasibility study supported continuation of the process. The feasibility study, which is expected to be completed by the end of 2016, will evaluate the profitability of the possible expansion. The studied investment will be cost competitive and it has synergies with the newest containerboard machine in Ostrołęka, which went into production in 2013. If the investment is approved following the feasibility study, the capital expenditure for the expansion is estimated to be in the range of €350-400m over a couple of years.
Stora Enso’s long term investment criteria is to keep the capital expenditure into fixed assets approximately at the same level as depreciation. The planned investment at Ostrołęka Mill would fit this frame. In addition to fixed asset investments, Stora Enso invests approximately
€100m annually in biological assets.
“Poland is a large and growing market where we have a strong presence and customer base. Stora Enso regularly conducts feasibility studies to explore potential expansion opportunities. The decision regarding a possible expansion at Ostrołęka Mill will be made once the assessment is completed,” says Gilles van Nieuwenhuyzen, EVP Division Packaging Solutions.